ECOVISIONNAIRE(BIY)

Economics
Q. Excess Supply of onions in Maharashtra has put the farmers in a fix us a
diagram and economic theory to analyze the impact of the above statement on
the equilibrium price of onions in the market.

Q. A consumer is in equilibrium MUx=8 MUy=10 and Py= 5. At equilibrium the

price of X will be

(a) 1 (b) 4

(c) 2 (d) 1.5

Q. Which form of market is the for mobile phones in India?

Q. A society produces two good consumer goods (along Y axis) and producer
goods (along X axis). If the production technique of consumer goods become
superior, it would cause

(a) An inside shift in PPC on X axis.

(b) An outside shift in PPC on X axis.

(c) An inside shift in PPC on Y axis.

(d) An outside shift in PPC on Y axis.

Q. When MP increases,

(a) TP will increases at increasing rate.

(b) TP will increases diminish.

(c) TP falls.

(d) TP remains constant.

 Q. Average and marginal cost of producing the 5th unit of output are 720 and
Rs.16 respectively. Hence the average cost of producing the 4th unit of output will
be

(a) 21 (b) 30

(c) 42 (d) None

Q. Which of the following is firms demand curve

(a) TR (b) MR

(c) AR (d) AP

Q. A Supply Curve passing through origin making an angle of 60 has

(a) Unitary elastic supply (b) Highly elastic supply

(c) Less elastic supply (d) Perfectly inelastic

Q. Support price is best described as:-

(a) Minimum price guaranteed by the govt.

(b) Floor price

(c) Price more than equilibrium price.

(d) All of the above

Q. Under what condition is TVC zero?

Q. Write the relationship of slope of demand curve and elasticity of demand.

Q. How will start up India Campaign by Indian govt affect the PPC? Use diagram,

Q. MRSxy is 6 the price of X is Rs.12 and that of Y is Rs.3. is the consumer in

equilibrium? If not how will he react?

Q. The market demand for a good at Rs.8 is 200 units. The price rises and the
demand falls by 50 units. What is the new price if ed = 1.
Q. State true of false giving reasons:-

(a) Diminishing returns are only seen in short run.

(b) In the second stage of production MP falls.

Q. Explain with the help of a diagram, the nature of TFC.

Q. Why for the producer to be in equilibrium MR be equal to MC when MC rises?

Q. Which two market forms can sell more only by reducing the price? Using
diagrams bring out the difference between their demand curves.

Q. Distinguish between upward movement along the demand curve and leftward
shift in demand.

Q. How would the increases in the minimum, Support Price for rice affect the
production of pulses, when rise and pulses are grown, how will it affect the
equilibrium price of pulses?

Q. Complete the following table:-

Units TC AVC MC
1 80 -- 40
2 -- 35 --
3 -- -- 20
4 200 40 --

Q. State true or false with reasons:-

(a) There is an increase impact of in excise duty and supply of a given good.

(b) Supply of goods produced by nature is inelastic.

(c) Change in price of the commodity causes change in supply.

(d) Contraction of supply also means upward movement along the same supply
curve.
 Or

Explain the Geometric method of measuring Es.

Q. Using Marginal Product explains the law of Variable Prop. Also mention the
reasons of negative returns of production.

Q. Explain the concept of Marginal Rate of Substitution with the help of a

schedule. Also draw IC on the basis of that schedule.

Q. What is Market Equilibrium? How will increase in the price of substitute good
affect the equilibrium price and Quantity Also explain the chain affect?

Q. From the following data, calculate Gross National Product at Market Price by
(a) Income method, and (b) Expenditure method:

(Rs. In crores)

(i) Mixed income of self-employed 400

(ii) Compensation of employees 500

(iii)Private final consumption expenditure 900

(iv) Net factor income from abroad (-) 20

(v) Net indirect taxes 100

(vi) Consumption of fixed capital 120

(vii) Net domestic capital formation 280

(viii) Net exports (-) 30

(ix) Profits 350

(x) Rent 100

(xi) Interest 150

(xi) Government final consumption expenditure 450

 Q. From the following data calculate national income by (a) Income Method and
(b) Expenditure Method:

(Rs. In crores)

(i) Private final consumption expenditure 2,000

(ii) Net capital formation 400

(iii) Change in stock 50

(iv) Compensation of employees 1,900

(v) Rent 200

(vi) Interest 150

(vii) Operating surplus 720

(viii) Net indirect tax 400

(ix) Employers contribution to social schemes 100

(x) Net indirect tax 20

(xi) Net factor income from abroad (-) 20

(xii) Government final consumption expenditure 600

(xiiii) Consumption of fixed capital 100

Amit arora